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Step 1
A Money Market Mutual Fund is perfect for the investor who is not ready to make an investment or needs the money in a short term. Typically, if you need the money in the short term, you will stick it in a low interest savings account. However, you can now take advantage of high yield money market funds.
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Step 2
Putting your extra cash into a money market mutual fund can earn you an extra percentage point or two over a typical savings account. You can purchase money market mutual funds from brokers or directly from a mutual fund company.
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Step 3
There are typically two types of money market funds. One holds U.S Treasure securites and the other holds government-sponsored enterprises or GSE's. There are also taxable and non-taxable money market funds for you to choose from.
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Step 4
Once you have found the right money market mutual fund for you,go to your broker and place the order or contact the mutual fund company directly. If you can buy the money market mutual fund from the mutual fund company directly, this can save you money because you won't have to pay your broker a commission.
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Step 5
To withdraw money, you can either cash your account out directly or some have the option for you to write checks from the account. Some are now even offering debit cards for your money market mutual fund.
